Global stocks selloff pauses as investors catch their breath

Tumbling stock markets and rallying Treasuries steadied somewhat on Tuesday, as a modicum of calm returned to markets after the previous day’s dramatic moves when the Nasdaq saw its biggest one-day fall in over two years.

- 

S&P500 and Nasdaq futures were both just about in positive territory heading towards the US open , though the mood was still jittery and European shares, which had opened flat, were last down 0.68 Asia Pacific-ex Japan shares, which had been down around 1.758 earlier in the day were last just 0.58 lower.

The uneasy calm was in stark contrast to Monday, when shares tumbled as investors’ concerns about a potential economic slowdown were exacerbated after President Donald Trump in a weekend Fox News interview talked about a “period of transition” and declined to rule out a recession.

The S&P 500 fell 2.78 on Monday, its biggest one-day drop this year, while the Nasdaq slid 4.08, its biggest single-day percentage drop since September 2022.

“The speed of change in perceptions towards the new US administration is marked and there is uncertainty over tariffs, government layoffs, and weakening economic data,” said Jacob Falkencrone, global head of investment strategy at Saxo Bank.

“This on-and-off tariff environment makes it very hard to plan for anything.” Meanwhile, a rush to US Treasuries saw the yield on benchmark US 1O-year notes fall IO basis points on Monday its largest daily move in almost a month. It too was steadier on Tuesday, flat at 4.9948.